I have Dale GG’s Trust Magic and Nick Renton’s book on trusts but am confused by some of the parties to a trust. i understand the appointer cannot be a beneficiary of the trust but am unsure of some others. I ask the following:
Can the Trustee (person) be a beneficiary?
Can the shareholder/s of the trustee company be beneficiaries of the trust?
Can the trustee company also be a beneficiary of the trust?This issue is confusing me a little.
One more question…
Does a trust need to be established before i sign a contract to purchase a property with and/or nominee? If so how long is it until the trust can purchase a property or shares etc?
Hope you can help.
OSS
Usually Trust deeds are worded so the trustee is automatically a beneficiary, and any company to which a beneificary holds shares or directship etc is also automatically a beneficary.
Becareful with signing. Some states may allow a trust to be established after signing, but others (eg. QLD?) don’t. SO get professional advice.
Terryw
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Mortgage Broker
North Sydney
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OSS,
the Settlor is prohibited from being a beneficiary, but the Appointor commonly is, since he/she is usually the one setting up the trust.
TerryTerence McMahon
HomeWin
FinanceIf the trust has only one beneficiary and that same person is the trustee (not a company) then I think you’ll find that trust does not exist in the eyes of the law. Otherwise yes the trsutee person can be a beneficiary (just so long as there are other beneficiaries also).
It is very common for shareholders (and directors) of the trustee comapny to be beneficiaries.
Yes the trustee company can be a beneficiary.
Two answer to your last question. If you buy an asset (property) before the trust exists you are going to pay double stamp duty in most states. Also from an asset protection point of view you are leaving yourself open to a challenge.
Best bet is to get the trust created and the deed stamped and then go shopping.
Cheers,
GregOriginally posted by Grreg:the trustee company can be a beneficiary
Although to me that seems to defeat the purpose of having a trustee company in the first place.
I think for asset protection reasons, and simplicity (ie. tax returns, etc), the idea normally is to have the trustee company do nothing (else) and own nothing.
GP
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